Posted on: 09th Sep, 2009 11:10 pm
i hav a va loan that requires no downpayment, but a gift letter is needed. wat if u cant find anyone to give u money as a gift? wat can u do?
Hi,
If you do not need to put any down payment, I don't see any reason why the lender's asking for a gift letter. Is it for the closing costs involved in closing of the loan? Are you going to pay the closing and other related costs out of your own pocket? If you're paying it out-of-pocket, I don't think you need any gift letter. However, if you're getting this money from any of your close relatives, you need to submit a gift letter.
If you do not need to put any down payment, I don't see any reason why the lender's asking for a gift letter. Is it for the closing costs involved in closing of the loan? Are you going to pay the closing and other related costs out of your own pocket? If you're paying it out-of-pocket, I don't think you need any gift letter. However, if you're getting this money from any of your close relatives, you need to submit a gift letter.
regardless of the reason you need a gift letter, your biggest problem is finding someone to give you the gift that would necessitate that gift letter.
if there is nobody willing or able to provide a gift, then you'll have to find other ways in which to garner the funds you need (savings, sale of personal items - valuable ones, getting a new, additional job and using those wages to stash some money). other than that, it appears you have a problem on your hands.
if there is nobody willing or able to provide a gift, then you'll have to find other ways in which to garner the funds you need (savings, sale of personal items - valuable ones, getting a new, additional job and using those wages to stash some money). other than that, it appears you have a problem on your hands.
why you asking for gift letter? what's purpose?
does it really matter why?
stephen
it is really surprise. one side they are ready to give loan without any downpayment. on the other hand they are asking for gift letter.
i think you need to ask it from lender.
it is really surprise. one side they are ready to give loan without any downpayment. on the other hand they are asking for gift letter.
i think you need to ask it from lender.
if you are involved in the mortgage industry in any way, or if you are involved in this forum in any way, you ought to recognize that every mortgage loan has specific traits. one of those traits is down payment, another is closing costs. with va loans, there is no down payment requirement; however there will be closing costs.
with other loan types, there are down payment requirements as well as closing costs requirements.
here, we are faced with a quandary. stephen writes in and asks what to do when he has no one to obtain a gift from. he didn't say he couldn't understand the need for a gift - he only wants to know what to do now that he can't find someone with the willingness or wherewithal to provide him with a gift.
clearly, in this case, he has already had contact with the lender, and he probably has at least a minimal understanding of why a gift letter is required. but where oh where can he get this gift? can anyone else address this issue? can we please get past the fact that none of US can understand why the lender has requested it? let's see if we can provide him with a clue as to what to do.
with other loan types, there are down payment requirements as well as closing costs requirements.
here, we are faced with a quandary. stephen writes in and asks what to do when he has no one to obtain a gift from. he didn't say he couldn't understand the need for a gift - he only wants to know what to do now that he can't find someone with the willingness or wherewithal to provide him with a gift.
clearly, in this case, he has already had contact with the lender, and he probably has at least a minimal understanding of why a gift letter is required. but where oh where can he get this gift? can anyone else address this issue? can we please get past the fact that none of US can understand why the lender has requested it? let's see if we can provide him with a clue as to what to do.
Hi George,
I received a Mortgage Gift such as cash for down payment. Do I have to report or pay tax by the end of the year?
Thanks,
Paul
I received a Mortgage Gift such as cash for down payment. Do I have to report or pay tax by the end of the year?
Thanks,
Paul
paul, as a general rule, there is no tax payable when you receive a gift. you should consult with a tax advisor, frankly. i am not a tax advisor, so i am not possessing any specific expertise in the matter. you can also contact the irs directly with questions of this nature.